I’m a social worker turned financial planner who uses both skill sets to help folks prepare for the mental, social, and physical, as well as the financial aspects of retirement. I’ve written a book, The Naked Retirement, run a website and webinars through the RetirementProject.org, and help investors navigate the rocky waters of Wall Street as a fee-based registered investment advisor, at SYNERGOS Financial Group.

Snowbird Report: Five Things To Do Before Heading South For The Winter

It’s that time of year in the great north once again, when retirees, both young and old, begin their annual trek south for the winter. More than one million seasonal residents head to Florida alone, with plans to soak up the sunshine for at least five months. But there won’t be any fun in the sun if snowbirds don’t take the time to prepare themselves in these five ways before they hit the links and beaches for the winter.

Don’t Let Your CD’s Auto renew

Bank CD’s can auto renew at a very low default rate and for the same period of time you held your last CD. That can mean both low rates and penalties to make changes when you return. Before you head south, warm up to the branch manager and get their direct number so your rate isn’t left out in the cold.

Keep The Tax Man Off Your Holiday List:

If you are 70 ½ or older this year, you are required to take a minimum distribution (RMD) from your IRA. Failure to do so can result in a 50% tax penalty on the amount you should have taken. Technically, you have until Dec 31 to take your distribution for the year, but don’t wait and risk the penalty. Request it before you go and send the tax man an empty holiday card instead.

Be Prepared For The Unexpected:

Whether you’ve been married for 50 years or you just took the plunge again, if you don’t have copies of durable and medical powers of attorney you won’t have any say in your spouse’s financial and health matters without some costly court time. Keep the documents updated and handy to avoid any unnecessary hassles or family disputes in case things turn out differently than you expect.

Update Your Plastic:

Make sure your major credit cards, bank debit card, and your driver’s license won’t expire while you are away. Most banks and finance companies will not send new cards to a temporary or forwarded address in order to avoid mail fraud. Save yourself the embarrassing looks at dinner, the spa, or the golf course when your card is declined and have them issue you a new card now.

Pre-pay Insurance Premiums:

Pre-pay any auto, life, health, or long-term care insurance policies that could lapse while you’re soaking up the sunshine. By pre-paying policies in advance you’ll afford yourself the opportunity to drive fast and furious on the way down, eat excessively while you’re there, and forget the names and birthdays of your freezing family and friends back home since you’ll be covered.

As a final measure, be sure to stay conscious of your personal and financial privacy. Steer clear of free public WI-FI spots when checking financial information and talk to your local post office about the pros and cons of forwarding your mail as compared to or temporarily changing your address.

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